Answer:
any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Explanation:
IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globall
IAS 32 defines a financial instrument as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Answer:
Correct option is (c)
Explanation:
Face value of bond is $1,000. If investors feel that bond issued by Springfield is less attractive than other bonds, this means either the bond is offering a coupon rate lower than market interest rate prevailing in the market as compared to other bonds.
In this case, bond will be sold at a price lower than its face value. This is also called discount bonds. Price of the bond falls as investors feel they can buy a similar bond that offers better returns.
Out of all options, $875 is lower than face value of $1,000, so, bond would be most likely sold at $875.
Answer:
$37,455
Explanation:
The unit of production method of depreciation charges higher amounts of depreciation seasons of higher output. The depreciation amount is propositional to the level of production.
The formula applicable in the calculation of the unit of depreciation is as follows.
Depreciation = depreciable value / estimated production value x units produced
For this machine: depreciable value = Asset cost - residual value
Depreciable value =$264,970- $14500 = $250, 470
Estimated units to be produced = 759,000 bolts
Units produced in the second year =113,500
Depreciation for the second year
= 250, 470/ 759,000 x 113,500
=0.33 x 113, 500
= $37,455
A. Michigan is the answer
Answer:
d. both countries, as whole, will be better off.
Explanation:
When countries leverage on their comparative advantages, they will be better off. In this instance as US has comparative advantage in producing airplanes, it will be more cost effective for them to produce and export to Japan.
So also Japan will find it cheaper to produce televisions and export to the US. Both contries reduce cost by producing goods they have comparative advantage in.
